AZ SB1016

Amends Arizona Revised Statutes to allow cities, towns, and counties to establish water and energy improvement districts (WEIDs) that enable property owners to finance qualified energy and water efficiency projects through contractual assessments.

Qualified improvements include energy or water efficient systems on commercial, industrial, or residential properties (five+ units) that are permanently affixed and intended to make properties more energy or water efficient or independent.

Requires local governments to adopt resolutions of intent, hold public hearings, and establish programs with specific requirements including form contracts, eligibility criteria, underwriting standards, and third-party baseline and completion reviews.

Assessments imposed under the program create a first lien on property with the same priority as ad valorem tax liens, can be collected like property taxes, and may be secured by bonds or notes issued by the local government.

Prohibits local governments from making permits or licenses contingent on participation in the program and requires mortgage holder consent before property owners can participate in WEID financing.